Govt. gives Rs. 44 b boost for locally manufactured medicines

Wednesday, 4 December 2024 00:00 - - {{hitsCtrl.values.hits}}

Approves awarding procurement for over 330 types of medicine

By Charumini de Silva

The Government has approved the procurement of medicines and medical supplies worth over Rs. 44 billion from local manufacturers, aiming to address shortages in hospitals and clinics, while giving a boost to the pharmaceutical industry.

The decision follows recommendations by the Standing Procurement Committee appointed by the Cabinet of Ministers.

The procurement plan is based on approvals granted at the Cabinet meeting on 14 October 2024 targeting one-year supply of locally manufactured medicines.

The Health Ministry prepared these four procurement lists to ensure seamless delivery which includes; medicines supplied by the State Pharmaceuticals Corporation (SPC), products from local producers in joint ventures with the SPC, supplies under easy purchase agreements with the Health Ministry and supplies from newly identified local producers currently not under agreements.

Approves awarding procurement for over 330 types of medicine:

To award the procurement of supplying 42 types of medicines to the SPC for an amount Rs. 5,398.83 million.
To award the procurement of supplying 131 types of medicines to the local producers that have signed the joint venture agreements with the SPC for an amount of Rs. 16,611.42 million.
To award the procurement of supplying 36 types of medicines to the local producers that have signed the easy purchase agreements with the Health Ministry for an amount of Rs. 9,022.10 million.
To award the procurement of supplying 130 types of medicines to the newly selected 24 local producers for an amount of Rs. 13,374.65 million.

Speaking at the weekly post-Cabinet meeting media briefing yesterday, Cabinet Spokesman and Minister Dr. Nalinda Jayatissa opined that the move will provide an opportunity for the local drug manufacturers to expand their production, reduce dependency on imports and encourage investments in the pharmaceutical sector.

“This initiative not only addressed medicine shortages countrywide, but also strengthens the local pharmaceutical industry,” he said.